Polk Commission to Discuss Tax Breaks for Amazon if Warehouse Built in Lakeland

Monday

Jul 8, 2013 at 2:17 PMJul 9, 2013 at 4:28 AM

Polk County commissioners will consider $4.5 million in property tax incentives Tuesday that could bring an Amazon warehouse to Lakeland.

By RYAN E. LITTLETHE LEDGER

BARTOW | Polk County commissioners will consider $4.5 million in property tax incentives today to lure an Amazon warehouse to Lakeland.Multiple counties and cities in Florida are vying for the warehouses and their 3,000 jobs since Gov. Rick Scott announced a deal last month to bring the warehouses — and sales tax on Amazon purchases — to Florida.In Polk County, Lakeland and Winter Haven officials have said their cities have sites in the running, but one of the warehouses appears to be headed to Lakeland, although outside the city limits.Lakeland and county economic development officials were tight-lipped Monday about the deal, but Rep. Seth McKeel, R-Lakeland, said he thought the deal was done."It's a very positive thing for the region, no question," McKeel said. "The number of jobs we are talking about, I would suggest, is very, very positive."The deal Polk County commissioners will consider today would offer 10 years of property tax incentives, reducing Amazon's tax bill by 75 percent, according to county records. In exchange, Amazon is expected to create at least 100 high-paying jobs and make a minimum $10 million investment at 1900 County Line Road near Lakeland, according to documents, although county officials said this may not be the final site.The tax incentive plan will save Amazon about $448,723 in property tax revenues each year, county officials estimate. In total, Amazon officials plan to make a $102 million capital investment, creating 385 jobs with an average annual wage of $35,820 and benefits totaling $9,422 per worker annually, according to documents made available to The Ledger through a public records request. But only 248 jobs are expected to be full-time positions.Hillsborough County commissioners already have approved a similar tax incentive plan for Amazon valued at $6.4 million for a location in Ruskin, but it is unclear whether that deal is finalized.An Enterprise Florida project overview given to county officials said Amazon will make a decision on a final location July 31. Enterprise Florida is the statewide economic development organization.Some have questioned whether both a Ruskin warehouse and a Lakeland warehouse would be built so close together, but Amazon officials plan to build two warehouses along the Interstate 4 corridor, the Orlando Sentinel reported, citing an anonymous source.The proposed Polk location rides the county line, just south of U.S. 92.Even though the location is barely in Polk County, the agreement Amazon officials must sign to receive the tax incentives calls for the company to put an emphasis on hiring from within Polk County; an emphasis on using Polk contractors; and at least 100 of the 385 jobs must pay 15 percent more than the average annual salary in Polk County, meaning at least $41,170 a year.Both Central Florida Development Council President David Petr and Lakeland Economic Development Council officials declined comment Monday, deferring to an Amazon spokeswoman who did not respond to an email or return calls.County Manager Jim Freeman said Amazon officials are still gathering information on potential sites and will make an announcement after they've evaluated the information.If Amazon does come to Polk, construction on the fulfillment center, as the company calls it, would start in the next few months, according to the project overview. If construction begins on schedule, Amazon officials expect the center to open in September 2014.If commissioners approve the deal, it will be only the second time they have used the incentives to lure new businesses and incentivize expansions — an authority granted to them by Polk voters in a November referendum.But the county tax abatement is not the only incentive Amazon is likely to receive. A letter to county officials from Lakeland Economic Development Council Business Development Director Claudia Tritton said Lakeland officials will grant a 90 percent mitigation of non-utility impact fees through the Economic Development Impact Fee mitigation program. Enterprise Florida also will pay $3,000 per job, or $744,000, through the Qualified Targeted Industry program and Workforce Florida will pay $1,500 per job, or $248,000, for employee training through the Quick Response Training program.Polk County commissioners are expected to take up the ordinance as their first order of business after their lunch recess today. Discussion should begin sometime after 1:30 p.m.

[ Ledger Reporter Tom Palmer contributed to this report. Ryan Little can be reached at ryan.little@theledger.com or 863-401-6962. ]